Presentation on Engro Foods Ltd

Company Law M.Com (Morning)

2nd Semester

Dedication

“We dedicate our presentation to our PARENTS and respected TEACHERS who taught and hold our hands on every step of our life.

Presented to

Sir Imtiaz AhmadUniversity Of Sargodha(Gujranwala Campus)

Presented by

Group Name:Fantastic Five• Hafiz Zia• Rana Shoaib Aslam• Hamza Siraj• Umar Sharif• Muhammad Ahsan

MCMF13M059MCMF13M042MCMF13m051MCMF13M038MCMF13M022

Approvals & Listing on the Stock Exchange

Hafiz Zia• MCMF13M059

Engro Foods Ltd

• Our Company• Why we chose Engro Foods?• History• Products

• Ice Cream • Flavored Milk • Fruit Juices • Milk Powders

Engro Foods Production Plant

Prospectus of Engro Foods

• Prospectus• Disclaimer• Glossary CDC CDA CDS

• Table of Content• Approvals

Share Capital & Related Matters

Hafiz Zia• MCMF13M059

Share Capital(Authorized & Issued, Sub & Paid Up)

Holding Company’s Shares

Shares (Directors)

No. of Shares Name Face Value Premium Total

1 Muhammad Aliuddin Ansari 10 - 10

1 Sarfarz A. Rehman 10 - 10

1 Ruhail Mohammad 10 - 10

1 Shahzada Dawood 10 - 10

1 Muhammad Amin 10 - 10

1 Zafar Ahmed Siddiqui 10 - 10

1 Mujahid Hamid 10 - 10

1 Abdul Samad Dawood 10 - 10

1 Roshaneh Zafar 10 - 10

1 Sabrina Dawood 10 - 10

Total 100 - 100

Private Investor(at PKR 15 Premium Per Share)

No. of Shares Name Face Value Premium Total

20828000 National Bank Of Pakistan

20828000 312,420,000 520,700,000

850000 American funds insurance series

850000 127,500,000 212,500,000

5120000 Acacia Institution Lp-USA

5120000 76,800,000 128,000,000

48,000,000 Sub Total 480,000,000 720,000,000 1,200,000,000

Total Paid Up Capital

No. of Shares Name Face Value Premium Total

748,000,000 7,480,000,000 720,000,000 8,200,000,000

Offer

• Offeree (General Public)

• Number of Shares (27,000,000)

• Face Value (PKR 10 per share)

• Premium (PKR 15 per share)

• Opening Date (July 5, 2011)

• Closing Date (July 7, 2011)

Terms of Offer

• Investor Eligibility Residential Status Companies Branches

• Facility to Non-Residential• Minimum Subscription• Tax related matters of application

Terms of Offer (Conti…)

• Fictitious and multiple application• Refund of Subscription money• Issue and Dispatch of Shares• Transfer of Shares• Physical Scrips• Book entry system

Dividend

• Dividend Policy• Eligibility for Dividend• Deductions• Zakat• Tax

• Capital Gain

Underwriting, Commissions, Brokerage & other Expenses

Rana Shoaib Aslam• MCMF13M042

Underwriting, Commissions, Brokerage & other Expenses

• Underwriting

Underwriting, Commissions, Brokerage & other Expenses

• Buy Back/repurchase agreement• Underwriting Commission• Commission to Bankers to the Offer• Brokerage• Estimated expenses to the Offer

Underwriting, Commissions, Brokerage & other Expenses

• Estimated expenses to the Offer

History & Prospects

• Engro Foods Limited It Started Food Business In 2006 In 2010 It Launched New Products Venture To Produce Halal Foods

• Dairy Juices Pak Is 5th Largest Country In Milk Producing 38 Billion Liters Per Annum Milk Producing Grows 2%

• Rice Plant

History & Prospects

• Segmentation Of Milk Ambient UHT Powder Milk Chilled Dairy

• Juices• 507 Million LTR (PKR 31 Billion P.A)

• Ice-cream• 71 Million sold in 2010 (8.8 Billion P.A)

• Juices And Nectar

History & Prospects

• Dairy Farm Established in 2008 With Covered area 557 Acers 2591 Animals Producing 20,000 LPD

• Production Facilities Sakkar & Sahiwal : 400000 & 700000 LPD respectively

• Ice Cream Plant Having Capacity 22 millions LPD

History & Prospects

• Global Business Unit Formed in 1st quarter of 2009 as GBU

• Capital Expenditure Plan & Financing Internal Cash Debt & Equity

Financial Information

Hamza Siraj• MCMF13M051

Financial Information

• Audit Report Balance Sheet Consolidated assets & liabilities : Company & its

Subsidiary

• Auditors Certificate• Management Accounts Balance Sheet Consolidated assets & liabilities : Company & its

Subsidiary

Audit Report (Balance Sheet)

Audit Report (Balance Sheet)

Consolidated assets & Liabilities : Company & its Subsidiary

Auditors Certificate : Issued, Subscribed & Paid Up Capital

Management Accounts : Balance Sheet (Unaudited)

Management Accounts : Consolidated assets & Liabilities : Company & its Subsidiary (Unaudited)

Risk Factors

• Economic Slowdown• Inflation & Interest rate• Operational Risk• Technological Risk• Barriers to entry• Competition Risk• Risk of Flood• Regulatory Risk

Management

Umar Sharif• MCMF13M038

Chairman

Muhammad Aliuddin Ansari

• President & CEO : since May 2012. • BA (Hons) : Finance & Investments.• Started Career : Investment Manager at Bank of America in London.

CEO (Chief Executive Officer)

Sarfaraz A. Rehman

• CEO of Engro Foods : 2005 to 2011• Chartered Accountant• Started Career : Finance & Marketing, manager at Unilever.• Rejoined Engro Foods as the CEO in 2013.

Board of Directors

Sr Name Father Name Nationality Occupation Residential Address

No. of Ordinary Shares

Signatures

1Muhammad

Aliuddin Ansari

Muhammad Abad Ansari Pakistan Business

Executive

44/II, 15th Street,

Khayaban -e-Seher, Phase -

VII, DHA, Karachi.

1 sd

2 Sarfarz A. Rehman Abdul Hadi Pakistani Business

Executive

5th Floor, The Harbour FrontBuilding, Plot No. HC-03, Block04, Marine Drive Clifton,Karachi

1 sd

3 Ruhail Mohammad

YOUSUF MOHAMMED Pakistan Business

Executive

H.NO. 101-1, KHY-E-BADBAN,PHASE V, DHA, KARACHI.

1 sd

4 Shahzada Dawood

Hussain Dawood

Pakistani Business Executive

F-6, Dawood Colony, National

Stadium Road, Karachi

1 sd

Board of Directors (conti…)

Sr Name Father Name Nationality Occupation Residential Address

No. of Ordinary Shares

Signatures

5 Muhammad Amin

Muhammad Amanat Pakistan Business

Executive

4TH Floor, Tower B, World Trade

Centre, Block 05, Clifton Karachi

1 sd

6 Zafar Ahmed Siddiqui

Muhammad Zameer Pakistani Business

Executive47/J, Block 06,

P.E.C.H.S Karachi 1 sd

7 Mujahid Hamid

Javeed Iqbal Pakistan Business Executive

MANAGEMENT COLONY, ENGRO CHEMICAL PAK LTD. DAHARKI,

DISTRICT GHOTKI.

1 sd

8 Abdul Samad Dawood

Hussain Dawood

Pakistani Business Executive

8th Floor, The Harbour Front

Building, Plot No. HC-03, Block

04, Marine Drive Clifton,K arachi

1 sd

Board of Directors (conti…)

Sr Name Father Name Nationality Occupation Residential Address

No. of Ordinary Shares

Signatures

9 Roshaneh Zafar

Muhammad Akram Ali Pakistan Business

Executive47/J, Block 06, P.E.C.H.S Karachi 1 sd

10 Sabrina Dawood

Mumtaz Ahmad Khan Pakistani Business

Executive

F-6, Dawood Colony, NationalStadium Road, Karachi

1 sd

Key Management

• NUMBER OF DIRECTORS 10 directors including the Chief Executive.• QUALIFICATION OF DIRECTORS According to Section 187 • APPOINTMENT/ ELECTION OF DIRECTORS AGM (Annual General Meeting) Present Directors elected on April 30, 2012 for a term of 3

(Three) years.• REMUNERATION OF THE DIRECTORS Articles of Association of the Company • INTEREST OF DIRECTORS IN PROPERTY ACQUIRED BY THE

COMPANY No interest in any property acquired by the Company.

Key Management

• VOTING RIGHTS Voting rights, attached to the ordinary shares of the Company

are equal.

Registered/Head Office

• Engro Foods Limited 5TH Floor, The Harbour Front Building

Plot # HC-3, Block 4 Scheme # 5 Clifton, Karachi

Phone: 00-92-21-5296000-4 Fax: 00-92-21-5295962

Banker of the Company

• Habib Bank Ltd.• MCB Ltd.• United Bank Ltd.• Bank Al-Habib Ltd.

Auditors of the Company

• A.F. Ferguson & Co. Chartered Accountants Address State Life Building 1-C. I.I.

Chundrigar Road. Karachi, Pakistan Number (021) 242-6711

Legal Advisor

Mr. Mohammad Jamil Advocate, Supreme Court 321 Prince

Centre, Preedy Street, Karachi

Financial Advisor

• National Bank of Pakistan Corporate & Investment Banking Group 1st floor, NBP Head

Office I.I. Chundrigar Road Karachi. Tel: +92 21 9921 2100 Fax: +92 21 9921 2257

Financial Advisor

• United Bank Limited Investment Banking Group 8th floor, State Life Building # 1 I.I.

Chundrigar Road Karachi. Tel: +92 21 111 825 111 Fax:+92 21 241 241 0

Running Finance Facilities

Sr Bank Amount (PKR in ‘000) Rate

1 MCB Bank Limited 200,000 1 Month Kibor + 1%

2 United Bank Limited 300,000 1 Month Kibor +1.25

3 Habib Bank Limited 300,000 1 Month Kibor + 1

Total 800000

Leasing Facilities

Sr Bank/DFI’s Amount (PKR in MN)

1 Standard Chartered Modaraba 1.021

2 Bank of Punjab 7.368Total 8.389

Investor

Name Amount Date

National Bank of Pakistan 520,700,000 13-May-2011

Acacia Institutional Partners LP - USA 128,000,000 09-May-2011

SAB Securities Limited- UK 25,000,000 09-May-2011Total 673700000

Financial Year

• 1st day of January and ends on the 31th day of December each year.

Memorandum of Association

Muhammad Ahsan• MCMF13M022

Memorandum of Association

• Engro Foods Limited• Registered office in Sindh• Objects Production of food items Processing Bottling Packing Import & Export Agricultural Business BY-Products Contracts with Government Acquisition (Al-Safaa) Obtain any Provisional Order

Memorandum of Association

• Objects Borrow Debentures PTC (Participation Term Certificate) TFC’s (Term Finance Certificate)

Open & Operate accounts with banks Liability of members is limited

Memorandum of Association

• Capital Authorized Capital PKR 8500,000,000 (850,000,000 Shares @ PKR 10 Per Share)

Shares Capital PKR 82,00,000,000 (700,000,000 shares @ PKR 10 Per Share + 48,000,000 @ PKR 10 + PKR 15 Premium Per Share)

GAPS

• Profit made by Promoters• Remuneration of Directors• Legal Proceedings• Disclaimer• Glossary• IPO

•

Thank You

Any Question?